Two big headlines caught my eye this week in the pensions world that perhaps offer hope of a revolution building in the industry.
Firstly, I was pleasantly shocked to see new data from Pensions UK that young savers (18-34) are getting more hands on and educating themselves about their pension. 31% of 18-34 know what their pension is invested in and 21% have made changes to their investment options. They are also more interested in UK domestic investments, even if returns are lower. This makes 18-34 the most informed and engaged generation as things stand.
While the research still shows many gaps in broader generational understanding and engagement with pensions, these are green shoots that the industry must harness. But who is going to harness them?
The other new kids
Perhaps this once in a generation opportunity might be taken up by nine firms that are ruffling the feathers of the old guard. This week The Times covered a new report released by these nine, including JP Morgan Personal Investing, Moneybox, Monzo, AJ Bell, accusing the incumbents of delaying tactics on customers transferring pensions.
Now, pensions should be like a good village game of cricket – polite and friendly sportsmanship, right? Seems like this game might be stirring into something like an Ashes-rivalry series.
Hard work paying off
Putting these two together, we perhaps have a vision of a new and evolving pensions landscape. Younger savers getting switched on to their pension is much needed – especially as this generation has the toughest ride to come when it comes to retirement. Perhaps some of this growing interest might be the result of the industry’s hard work in recent years.
The annual Pension Attention campaigns in recent years have used celebs such as Gemma Collins and Big Zuu to change the conversation and reach new audiences. These marketing campaigns have worked hard to drastically change the image that a pension is something you think about when you are in your 40s.
Despite facing high inflation and interest rates, and low wage and GDP growth in recent years, young people are increasingly plugged into what is happening with their money. Gen Z are seen as the Sustainability Generation – caring about the ethics of the products they buy and clearly the companies that their money is invested in. It would also seem that they also want their money to have a local impact buy supporting the UK economy – music to the ears of the Chancellor Rachel Reeves MP.
Gen Z are also living through the Monzo effect – simple and accessibly banking, all through an app. Many of the challenger platforms above offer similar approaches – from personal experience as a JP Morgan Personal investing customer (formally Nutmeg). This may also be a signal as to why younger people are getting more engaged with their pensions. These savvy platforms not only offer straight forward, accessible money management, they also have strong marketing voices.
Give them what they want
Being a challenger and the new cool kid on the block is never a given for being a success. These brands have worked hard in recent years to develop their easy and accessible platforms and talk in a language that makes sense and is native and natural. Take Monzo, on Instagram they have built up a strong 100k+ followers, while Pensionbee has 15.8k. This is versus the likes of Aviva (13.4k) and Legal and General (8.6k). Over on Tiktok the story is the same, Monzo is flying high at over 100k, with Scottish Widows at 10k.
The challenge that the incumbents face is how to tap into the same opportunity without risking looking like an awkward dad at their teenager’s birthday party.
Is GEO the answer?
Clearly the challengers are doing great things in the social and digital space to building audiences. That doesn’t mean it is necessarily the sole route for the old guard to get cut through and engagement – let’s not forget that traditional pension providers still manage millions and millions of the UK’s pension pots.
Generative Engine Optimisation (GEO) offers a new route that needs to be harnessed by brands. Research from Lloyds Bank last year revealed that 28 million adults are using AI platforms to help manage their money.
Here in lies the opportunity for brands. This growing interest in managing money and investments, matched with AI-sought advice, means that brands, old and new, need to optimise their content to take advantage. As my colleague Jennifer Vogels expertly outlined recently, when someone asks a question about your sector, your brand is either part of the answer or it’s not.
PR has a crucial role to play in this, alongside the wider marketing mix. Brands can’t afford to simply jump in and play on the new kids’ turf, while leaving PR behind on the benches. Brands need to:
- Develop strong and engaging thought leadership and advice that cuts through with credible sources to bring a brand through to the forefront.
- Data and insights that are verifiable and tap into emerging trends
- Build a credible and recognisable expert – the pensions industry uniquely has many of these
- Back up and amplify across your own channels with an authoritative voice and added expertise
A strong and consistent PR approach that builds depth and breadth for your brand across credible sources will put you in a strong position for AI-driven conversations. Other industries that are looking to drive behavioural change with younger audiences can perhaps now look to the pensions world for inspiration.
Explore how TEAM LEWIS can help your pensions brand lead in GEO and PR.
